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No savings at 40? I’d buy these FTSE 100 shares in an to ISA get rich and retire early

Are you a member of the ‘no savings at 40’ club? If so you might be thinking that you’ve blown your chances to get rich and retire early. You’d be wrong, although it’s probably is best if you get your skates on and start about share investing.

Even if you’re 40 years of age and don’t have anything saved up for retirement you still have time to build a decent nest egg to retire on. Studies show that long-term share investors – that’s those that buy shares and hold them for a decade or longer – tend to make great returns of at least 8% per year.

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It’s never too late

It’s still possible to get rich and retire early by buying UK shares, then. I’ve made some calculations to show how. For example, based on that minimum 8% figure, someone aged 40 who begins investing £500 per month in UK shares can expect to make a return of £450,000 before they reach the usual retirement age of 65.

It’s clearly never too late to begin investing. I’d argue in fact that the need to build any sort of retirement fund for your later years is a necessity whatever your age. Forget about any notions of trying to get rich for a second. With the State Pension coming under increasing attack you may need to start investing just to keep your head above water when you retire.

ISA, ISA baby

The first thing I’d do would be to open a Stocks and Shares ISA. These increasingly popular products are available from a wide range of financial services providers. They are easy to open and manage, and critically they enable you to avoid paying anything in taxes on your gains. With a maximum paying-in allowance of £20,000 a year they meet the needs of the vast majority of people, too.

Then I’d go shopping for UK shares that have been washed out during the stock market crash. The 2020 market collapse has seen many great companies frantically sold off along with the bad. As a consequence savvy share investors have a chance to get rich and retire early by buying these brilliant shares at rock-bottom prices and watching them explode in value as the global economy recovers from its recent downturn.

Get rich with FTSE 100 shares

There’s plenty of stocks on the FTSE 100 that I’m eyeing up closely at current prices. I like the look of United Utilities and SSE, firms whose essential services should keep profits growing whatever happens to the global economy. These blue chips offer dividend yields north of 5% at right now.

I’d also buy motor insurance provider Admiral because of its market-beating 6% dividend yield. Precious metals producer Polymetal International could also help you get rich on the back of rocketing gold prices this decade. The dividend yield here sits above 5% for 2020. And I’d also buy Prudential to latch onto booming insurance product demand in emerging markets. This FTSE 100 share is stunning value and trades on a price-to-earnings (P/E) ratio of just 10 times.

This is just a taster of some of the great value FTSE 100 shares that could help you get rich. So don’t worry if you have no savings by 40. By investing in UK shares each month it should still be possible to retire in comfort.

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Royston Wild owns shares of Prudential. The Motley Fool UK has recommended Admiral Group and Prudential. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.